AGENDA
ITEM
6 AGENDA
CALEXICO California ITEM
WHERE CALIFORNIA AND MEXICO MEET
6 CITY COUNCIL
AGENDA STAFF REPORT
DATE: March 4, 2026
TO: Mayor and City Council
APPROVED BY: Benjamin Martinez, City Manager w
PREPARED BY: Karla Chaparro, Finance Director Je
SUBJECT: 2025-26 2nd Quarter Budget Status Report and Resolution to Amend the 2025-26 Budget
Recommendation:
It is recommended that the City Council receive a briefing on the 2025-26 2nd quarter budget status and consider a resolution to amend the budget to reflect current trends and available balances. In addition, it is recommended that City Council discuss and provide feedback on future policy options for allocation of a one-time insurance settlement revenue.
Background:
The City Council adopted the 2025-26 budget on June 30, 2025. A 1st quarter budget report was presented on November 19, 2025. A 2nd quarter budget report is provided at this time to continue to assist the City Council in monitoring budget compliance through the first six months of the 2025-26 fiscal year.
The proposed 2025-26 budget amendment updates baseline 2025-26 General Fund revenues and balances new revenues with proposed new General Fund expenditures, with no net change to the baseline operating budget.
The proposed revenue budget also recognizes a recent one-time $1.6 million insurance settlement received for property damage at 352 1st Street. This report presents policy options for the allocation of this one-time revenue, and defers action on these policy options pending further discussion and input from the City Council. Policy options could include additions to/adjustment of the General Fund reserve target; partial funding of the $8.9 million in 5-year CIP proposals recently updated by General Fund program departments; paydown of the City's long-term debt obligations, or a combination there of. After receiving City Council input, options could be submitted for City Council action in either the 3rd Quarter budget report, or in the upcoming 2026-27 annual budget.
Discussion & Analysis:
City-wide Expenditures
A City-wide view of the current 2025-26 year-to-date expenditures and budget status is presented at Attachment A. All funds are at or below their expected expenditure trend. The City's key operating fund, the General Fund, has spent 47% of its annual budget through the first six months of the fiscal year. Capital spending remains low and is dependent upon contract awards. Overall, 15% of the annual expenditure budget has been drawn through the first six months of the fiscal year.
General Fund Expenditures
All General Fund departments are at or near the 50% target six-month expenditure trend as of December 2025. The City has also met its vacancy savings assumption (a reduced annual $250,000) during this period. Total General Fund expenditures through December are at 47% of the annual budget. A detailed listing of the 2025-26 General Fund expenditure budget and year-to-date status by program department is presented at Attachment D.
Four General Fund budget amendments are presented for City Council consideration in this report. First, City Council has considered hiring an in-house City Attorney. The annual cost of this position, with benefits, is estimated at $186,000. The proposed budget resolution adds this position to the authorized 2025-26 staffing plan. The proposed budget amendment also adds expenditure authority for the remaining 4 months of the fiscal year at $62,000. The budget for outside legal services has been reduced by the same amount, with no net change to the General Fund budget.
Second, $30,000 has been added to the City Manager's Professional Services budget to support costs associated with a potential revenue measure, as well as other consulting services as needed. This allocation will provide flexibility to obtain specialized expertise, including strategic, financial, or advisory support, should such services be required.
Third, the Police Department has assumed organizational responsibility for the City's Code Enforcement program and staffing, effective at the beginning of this fiscal year. Accordingly, the Code Enforcement annual budget of $247,915 is proposed for reclassification out of the Planning/Engineering/Building department and into the Police Department budget.
Finally, the Fire Department has identified a Pro-care operating contract for $22,000 that was omitted from the original budget. A budget amendment is proposed to fund this existing contract obligation.
The net total of these four proposed expenditure amendments is $52,000 and is paid for with a corresponding increase in the General Fund baseline revenue budget.
General Fund Revenues
The six-month revenue trend for the City is encouraging and presents an opportunity to update key tax and program revenue estimates. The City's property tax consultant estimates a 4% increase in the City's assessed property tax valuation, favorable to the 2% estimate used in the adopted budget. The County is behind in their scheduled tax distributions, causing some concern and risk in the projection, but we expect that the County staff will catch up and match the tax distributions to the new assessed valuation. Sales tax for the General Fund is on target 2 with projections for the July to December period. While Business License revenue is short through the recent annual January remittance deadline, causing a drop in projection of $79,000, the Transient Occupancy results for the first two quarters of the year are ahead of budget and present a $30,000 increase in the annual projection. The Ambulance trailing 12-month revenue trend is meeting the budget projection, with no proposed amendment. Finally, the combined Planning, Engineering, and Building program fees are trending $70,000 ahead of the budget projection. The following table summarizes the $52,000 net increase in baseline General Fund revenues.
Current Revenue Budget $ 24,495,896
Updates
Property Tax 15,000
Business License (79,000)
Transient Occupancy Tax 30,000
Other General Revenues 16,000
Program Revenues - Planning, Engineering, Building 70,000 52,000
Adjusted Revenue Budget (Baseline) 24,547,896
One-time Insurance Settlement 1,674,094
Adjusted Revenue Budget (Total) $ 26,221,991
In addition to the proposed update to the on-going General Fund baseline revenues, the City has received a one-time insurance settlement of $1.6 million for damages to its property at 352 1st Street. These supplemental revenues provide an opportunity for the City Council to consider new options for the allocation of these funds, as discussed further below.
Policy Options for Allocation of $1.6 million Insurance Settlement Funds The City's past practice for approaching the allocation of one- time General Fund surplus provides City Council the option to support three financial policy objectives: 1) Reinvest in programs; 2) Build reserves; and 3) Pay down long-term debt, Build
such as retiree medical obligations. It is at the City Council's discretion to weigh the allocation of surplus funds to one or some combination of these options. The recommendation is to allocate one-time funds for one-time uses, and to
separately maintain ongoing program support for staffing and operations with on-going revenues.
Capital Option to Invest in Programs To inform the City Council's discussion on the use of these one-time funds, each General Fund program department has been asked to submit their 5-year equipment and facility capital requests. In past budget cycles, the General Fund has had limited to no capacity to fund equipment and facility capital requests. Instead, General Fund programs have faced deferred vehicle and equipment requests for the past ten years, since the budget challenges of 2015. The City's substantial capital program has instead been primarily focused on Federal/State grants for street projects and on Water/Wastewater bonds and fees for Enterprise projects. General Fund capital funding has been allocated from year-end budget surplus or other one-time funding, such as ARPA, , FEMA Covid reimbursements, and Public Safety grants. The current, initial program department 5-Year CIP list approximates $8.9 million of requests. These requests are listed in 3 Exhibit E. The requests have not been filtered or prioritized, and no funding action is requested at this time. This list is for information only, to demonstrate the scope of the department capital funding requests. These capital requests will be further developed and incorporated, as funding permits, in the upcoming 2026-27 annual budget.
Reserve Option The City Council might, as an alternative, build reserves by increasing the General Fund reserve target above the current policy of 68 days, which is 18% of General Fund expenditures. The current policy is detailed in the annual budget resolution and provides a 60- day working capital reserve, matching the average lag time in the receipt of annual property tax and sales taxes, and also provides an 8-day emergency reserve set at 10% of sales tax revenues, to address normal fluctuations due to economic cycles. This reserve target is within the range recommended by the Government Finance Officers Association for local governments.
The City Council has discussed some preference for increasing this target reserve level.
Debt Option The City Council recently took action in the 1st quarter budget report to contribute surplus 2024-25 funds into the Retiree Medical Benefit (OPEB) trust with CaPERS. The City Council could allocate additional funds to the OPEB trust, or pass on this option at this time because of its recent action and progress in paying down this long-term obligation.
Combination Reserve and Capital Alternative The following chart shows the range and impact to reserve targets with three alternative levels of capital funding:
With no capital allocation Projected reserve 28% (101 Days of operations) With $700,000 capital allocation Projected reserve 25% (90 Days of operations) With $1.8 million capital allocation Projected reserve 20% (74 Days of operations) This information is presented for City Council discussion and feedback at this time. Formal action to allocate these funds can be considered in the 3rd quarter budget report or with the 2026-27 annual budget.
Other Fund Status
#120 - Measure H
Updated projections for the Measure H fund are presented at Attachment F. Actual sales tax revenues for the first six months of 2025-26 were approximately $75,000 less than the budget projection. A long-term budget objective for the Measure H Fund has been to accumulate a $2 million reserve balance prior to the tax measure sunset in 2030. The City's sales tax consultant, HDL, will assist with updated revenue projections for the upcoming 2026-27 budget to update this target.
#513/522/544 - Water, Airport, and Wastewater Enterprise Funds The City's three enterprise funds, Water, Wastewater, and Airport, as previously discussed, continue to need additional work with rate and operational updates to restore their long-term operating, debt service, and capital budgets for sustainable ongoing service delivery to their customers. Additional discussion on these programs will be needed prior to consideration of the upcoming 2026-27 budget.
4 Fiscal Impact:
The proposed General Fund 2025-26 ongoing "baseline" budget amendment continues to be "break even," with ongoing revenues matching expenditures.
With the additional recent one-time General Fund insurance settlement revenue of $1.6 million, the combined General Fund and Measure H Fund Reserves are currently projected at $6.7 million at June 2026. This report briefs City Council on policy options for future consideration, to allocate these insurance proceeds to either increase/adjust the General Fund reserve target; partially fund the General Fund program departments' $8.9 million 5-Year CIP project requests; pay down long-term debt; or a combination thereof. Action on these options is deferred pending further discussion and City Council input.
With these proposed actions, the City's General Fund continues to maintain and improve its fiscal position and stability.
Attachments:
Resolution
Exhibit 1 to Resolution
A. 2025-26 City-wide Expenditures - Summary of Expenditures by Fund B. General Fund - Fund Balance Projection
C. General Fund - Revenues
D. General Fund - Expenditure Summary
E. General Fund - Program Department 5-year CIP Requests F. Measure H
RESOLUTION NO. 2026-_
RESOLUTION OF THE CITY OF CALEXICO APPROVING
2025-26 BUDGET AMENDMENT
WHEREAS, the City Council adopted the 2025-26 Annual Budget on June 30, 2025; and WHEREAS, the City Manager has prepared a 2nd Quarter 2025-26 budget update to brief City Council on the City's current budget status, including updated revenue projections and year- to-date expenditures; and
WHEREAS, the City Manager has proposed a budget adjustment as listed in Exhibit 1 to this resolution, including updates to the 2025-26 budget;
NOW, THEREFORE, BE IT HEREBY RESOLVED, DETERMINED, AND
ORDERED BY THE CITY COUNCIL OF THE CITY OF CALEXICO, AS FOLLOWS:
Section 1. The foregoing recitals are true and correct and are a substantive part of this Resolution.
Section 2. The 2025-26 budget is amended as listed in Exhibit 1 to this resolution.
Section 3. The 2025-26 staffing plan is amended to add 1.0 FTE City Attorney position.
Section 4. The City Manager is authorized to allocate the budgeted vacancy savings target between General Fund departments as needed to match the savings realized by various departments
PASSED AND ADOPTED at a meeting of the City Council of the City of Calexico this 4th day of March, 2026.
Victor Legaspi, Mayor
ATTEST:
Veronica L. Alvarado, City Clerk
APPROVED AS TO FORM:
Henry G. Castillo, City Attorney
STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) SS.
CITY OF CALEXICO
1, Veronica L. Alvarado, City Clerk of the City of Calexico do hereby certify that the foregoing Resolution No. 2026-xx was passed and adopted by the City Council on the 4th day of March 2026 by the following vote to-wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Veronica L. Alvarado, City Clerk
Exhibit 1 to Resolution
Proposed Midyear Budget Adjustments
2025-26
March 4, 2026
Fund Balance Impact
111 General Fund
Revenues
To update budget for current revenue trends
Property Tax 15,000
Business License (79,000)
Transient Occupancy Tax 30,000
Property Transfer Tax 9,000
Housing in Lieu 7,000
Planning, Engineering, Building - Program Revenue - Fees 70,000 52,000
One-time Funding
Insurance Settlement 1,674,094
1,726,094
Expenditures
To Add City Attorney FTE (4 months) with Reclass from Legal Administration - Salaries and Benefits 62,000
Administration - Legal Fees (62,000)
To add Professional Services budget to City Manager for revenue measure and other consulting services
Administration - Contracts 30,000
To move annual Code Enforcement budget to Police from Building for new organization structure
Police - Salaries and Benefits 247,915
Building - Salaries and Benefits (247,915)
To add Maintenance budget for Fire Stryker contract (Pro Care) Fire - Contracts 22,000
52,000
Net Fund Balance Impact 1,674,094
120 Measure H
Revenues 2025-26 Six Month Trend (Risk) (75,000)
(75,000)
1,599,094
2025-26 Total, All Funds
Revenues $ 1,651,094
Expenditures (52,000)
Net Change in Fund Balance $ 1,599,094
...-
ATTACHMENT A
ATTACHMENT A
2025-26 2nd Quarter Budget Report
CALEXICO City-wide Expenditures
Summary of Expenditures by Fund
2025-26 Budget YTD Actual
1/12/26-Six
Current 2nd Q Update Adjusted Months % Used Notes
111 General Fund $ 24,360,314 $ 52,000 $ 24,412,314 $ 11,574,865 47% 120 Measure H Sales Tax 3,995,442 3,995,442 1,455,300 36% ant Funds
221 Library Grants 69,633 69,633 51%
222 Community Donations 69,820 69,820 22%
224 New River Operations 449,769 449,769 4%
231 Gas Tax 1,224,837 1,224,837 44%
237 Road Maintenance Rehab 4,510,000 4,510,000 3%
241 Asset Seizure/Forfeiture 328,000 -
242 Prop 172/Public Safety Tax 328,000 25%
243 COPS State Grant Program 286,000 286,000 45%
245 HIDTA 47,000 47,000 0%
246 Stonegarden 75,000 75,000 26%
256 Cannabis/Applicant Reimburse 0%
: :
258 National Opioid Settlement Fund
281 Solid Waste 2,919,320 2,919,320 38%
299 Operating Grants 511,290 511,290
712 Business Imp District
802 Successor Housing 100,000 100,000 7,221 7%
840 Fed CDBG - Program Income 8,500 8,500 2,263 27%
841 Fed Home - Program Income 6,000 6,000 2,708 45%
Local Funds 61,500 61,500 312 1%
846 CalHome - Program Income 1,000 1,000 469 47%
ct and Debt Service Funds
223 Art in Public Places 117,000 117,000 0%
LTA/Measure D 11,732,765 11,732,765 507,356 4%
233
Transportation Development 282,000 282,000 3,315 1%
FEMA/Disaster Recovery/ARPA 2,898,337.03 2,898,337 364,707 13% Measure D Bond Proceeds 2,951,905 2,951,905 0%
411 Local Capital Projects 2,862,969 2,862,969 1,363,975 48% Capital Grants 10,990,116 10,990,116 192,402 2%
Development Impact Fees 2,258,868 2,258,868 0%
velopment Projects 1,654,565 1,654,565 0%
w River Projects 9,599,500 9,599,500 1,757,925 18%
310 Measure H Debt Service 999,750 999,750 110,300 11%
inds
513 Water Operations 8,112,785 8,112,785 2,908,582 36%
Water Debt Service 852,517 852,517 582,848 68%
Water Development Fees 678,635 678,635 -
Water Capital Program 15,231,000 15,231,000 118,576 1%
522 Airport Operations 419,419 419,419 208,426 50%
Wastewater Operations 6,489,869 6,489,869 0%
Wastewater Debt Service 1,175,229 1,175,229 824831 70%
Wastewater Impact Fees 326,528 326,528 0%
Wastewater Capital 46,981,500 46,981,500 62.414 0%
547
Districts
261 Bravo Victoria 745,000 745,000 15,737 2%
903 Hearthstone 907,501 907,501 328,066 36%
Gran Plaza 533,302 533,302 345,219 65%
Internal Service Funds
601/2 Active and Retire Medical 5,622,376 5,622,376 1,932,149 34% 603 Workers Compensation 1,601,000 1,601,000 618,503 39% 604 Unemployment Insurance 74,763 74,763 0%
605 General Liability Insurance 1,649,400 1,649,400 661,686 40% 607 Compensated Absence Reserve
601-7 Net Internal Charges (8,947,539) (8,947,539) (3,212,338) 36% $ 167,824,485 $ 52,000 $ 167,876,485 $ 24.974,567 15%
ATTACHMENT B
ATTACHMENT B
2025-26 2nd Quarter Budget Report
CALEXICO General Fund
Fund Balance Projection
2023-24 2024-25 2025-26 Notes
Actual Budget
(Unaudited Current Update Adjusted
March 2025) (March 2025)
Actual Budget Budget
Annual Activity
Revenues
Property Tax $ 6,734,388 7,249,321 7,529,528 15,000 7,544,528 Sales Tax 5,301,127 5,207,976 5,351,920 5,351,920
Other General Revenues 3,305,133 3,051,607 3,194,102 (33,000) 3,161,102 Program Revenues 4,203,788 5,278,686 5,509,746 70,000 5,579,746 Measure H Transfer 1,122,044 2,815,000 2,910,600 2,910,600 20,666,479 23,602,592 24,495,896 52,000 24,547,896 4% vs Prior Year One-time Revenues 1,674,094 1,674,094
20,666,479 23,602,592 2,495,896 1,726,094 26,221,991
Expenditures
Salaries and Benefits
Gross salary and benefits 13,549,658 14,768,897 15,562,070 62,000 15,624,070 Proposed New FTE (4 Vacancy Assumption (250,000) (250,000) Months): City Attorney Measure H Reimbursement (1,250,000)
Grant/Other Reimbursements (668,786) (576,505) (726,910) (726,910) 11,630,872 14,192,392 14,585,160 14,647,160
Operating Costs ($10K) adjustment is
Operating Costs 4,197,147 4,897,593 5,982,572 (10,000) 5,972,572 net of +$30K CM General Liability Insurance 694,141 931,422 993,498 993,498 Prof Services; $(62)K Contribution to CFD 2013 224,097 264,031 265,000 : 265,000 Legal Fee reclass to Cost Allocation (1,105,910) (1,213,458) (1,244,810) (1,244,810) FTE; +$22K Fire 4,009,476 4,879,588 5,996,259 120,0000 5,986,259 Maint contract Capital and Debt Service
Capital/One-time Fund Transfers 1,260,000 58,275 58,275 Transfer to Local Capital Fund See Policy Option Below
Transfer to Airport Fund 98,000 98,000 98,000
Debt Service - Leases 251,829 212,537 232,804 232,804
Employee Leave Obligation 25,000 25,000 25,000 25,000
CaPERS - Unfunded Liability 2,059,628 2,377,817 2,681,086 : 2,681,086 Retiree Medical - Benefit Payments 713,276 844,904 661,988 661,988 Retiree Medical - Amortize Liability 21,569 21,618 21,741 : 21,741 4,331,303 3,579,876 3,778,895 3,778,895
Total Expenditures 19,971,651 22,651,856 24,360,314 52,000 24,412,314 Net Annual Operating Results 694,328 950,735 135,583 $ 1,674,094 $ 1,809,677 Fund Balance
Beginning Fund Balance $ 3,288,532 $ 3,983,360 $ 5,066,132 $ (132,036) $ 4,934,096 Annual Operating Results 694,828 950,735 135,583 1,674,094 1,809,677 Ending General Fund Balance 3,983,360 4,934,096 5,201,714 1,542,058 6,743,772 Reserve Policy Options With 5-yr capital funding
Measure H Fund 725,799 71,840 (75,000) (700,000) (1,800,000) Combined General/Measure H Reserve 3 4,709,159 $ 5,005,936 35,278,112 $ 1,467,058 $ 6,745,170 $ 6,045,170 $ 4,945,170 % Annual General Fund Expenditures 25% 20%
Days of General Fund Operations 101 90 74
ATTACHMENT C
ATTACHMENT C
2025-26 2nd Quarter Budget Report
General Fund
CALEXICO Revenues
2021-22 2022-23 2023-24 2024-25 2025-26
Actual
(Unaudited as Current Budget Update 2nd Q
Actual Actual Actual of Mar 2026) Budget (March 2026) Budget pY General Revenues
Property Tax
Property tax 2,148,740 2,310,064 2,444,686 2,570,062 2,627,316 $ 45,000 $ 2,672,316 4% Property Tax in lieu of MVLF 3,252,615 3,420,501 3,561,330 3,713,845 3,786,464 60,000 3,846,464 4% Residual Tax Increment 783,769 821,995 728,372 965,414 1,115,748 (90,000) 1,025,748 6% 6,185,124 6,552,559 6,734,388 7,249,321 7,529,528 15,000 7,544,528 4% Sales Tax
4,783,443 4,983,361 5,301,127 5,207,976 5,351,920 5,351,920 3% Business License
Business License 788,593 883,612 824,237 911,016 969,388 (79,000) 890,388 -2% Cannabis 202,759 170,956 155,736 135,968 142,800 142,800 5% 991.351 1,054,568 979,973 1,046,984 1,112,188 (79,000) 1,033,188 -1% Franchise Fees 32%
PGE/Cable/Other 226,865 222,929 216,455 169,674 224,314 224,314 Solid Waste 487,343 518,604 544,507 560,099 564,938 564,938 714,207 741,532 760,962 729,773 789,251 789,251 8%
Other Taxes
Transient Tax 529,017 582,508 531,473 364,884 470,000 30,000 500,000 37% RI Prop Trns Tx 69,157 44,083 28,842 41,142 25,500 9,000 34,500 - 16% sg Ath In Lieu 84,401 104,025 112,156 106,961 7,000 113,961 2% 69280- 710,992 664,340 518,182 602,461 46,000 648,461 25% Money and Property
Investment Earnings 10,222 40,935 327,193 137,966 150,000 150,000 9% Rents And Concessions 252,222 243,233 241,393 279,127 191,098 191,098 -32% New cell tower Water/Wastewater Leases 318,362 266,913 274,920 274,920 286,027 286,027 - 5% aeremens 580,806 551,081 843,506 692,013 627,125 627,125
Other Miscellaneous Revenue
State VLF 46,771 39,693 47,833 61,905 63,077 63,077
Misc Income 2,460 20,477 8,520 2,750
Insurance Reimbursement 1,674,094 1,674,094
Sale of Assets
49,230 60,170 56,352 64,655 63,077 1,674,094 773. 71 25876 Subtotal, General Revenues 13,983,547 14,654,263 15,340,647 15,508,905 16,075,550 1,656,094 17,731,644 Continued
ATTACHMENT C
2025-26 2nd Quarter Budget Report
CALEXICO General Fund
Revenues
2021-22 2022-23 2023-24 2024-25 2025-26
Actual
(Unaudited as Current 2nd Q % AS
Continued Actual Actual Actual of Mar 2026) Budget Budget PY Program Revenues
Police
Vehicle Code Fines 18,612 15,533 13,286 21,733 14,280 14,280 -34% Alarm Permits 800 750 450 300 50,000 50,000 100%+
SRO Program 89,913 146,702 270,000 270,000 84%
Special Service 34,138 36,795 32,911 30,639 30,090 30,090 - 2% Towing Fees 40,906 30,812 41,863 56,473 53,040 53,040 -6% Livescan 32,946 35,062 32,695 29,680 30,600 30,600 3%
POST 12,825 7,071 13,917 18,444 15,300 15,300 -17%
Assessment District 2005-01 133,952 141,617 153,894 41,275 41,275 Prkg Mtrs/Lots 273,196 272,916 291,844 119,343 120,000 120,000 1% Traffic Control Grant 150,000 150,000 150,000 150,000 150,000 150,000 0% Parking Citations 192,766 200,966 166,829 137,257 145,860 • 145,860 6% Misc Fees/Services 450 637 6,954 8,817 6,620 6,620 -25% Animal Licenses/Control 6.823 5,884 4,080 3,356 4,223 4,223 26% 905,891 898,043 998,635 722,744 931,288 931,288 29%
Ambulance Fees 927,550 911,463 1,536,048 2,895,192 2,900,000 2,900,000 0% 12 month trend Fire Prevention 282,298 287,392 340,690 347,780 387,049 387,049 11% Assessment District 2005-01 41,275 41,275
Fire Late and Other Fees 1,846 14,854 13,262 26,825 9,572 9,572 -64% 1,211,693 1,213,710 1,890,000 3,269,796 3,337,896 3,337,896 2% Planning & Building
Building
Building permits 409,750 393,390 211,447 299,470 275,400 25,000 300,400 0% Mechanical permits 45,685 35,499 27,043 35,663 32,640 32,640 Plumbing permits 39,059 19,508 12,848 22,713 20,400 4,600 25,000 10% Electrical permits 71,526 83,818 89,243 85,244 81,600 8,400 90,000 6% Other permits 4,738 10,160 3,600 1,482 1,479 1,479 0%
Plan Check Fees 100,009 152,740 305,875 163,597 153,000 (13,000) 140,000 Code Enforcement 607 2,398 1,720 3,593 3,774 3,774 5%
Books, Maps and Publications 651 1,620 216
Continued
....
ATTACHMENT C
2025-26 2nd Quarter Budget Report
CALEXICO General Fund
Revenues
2021-22 2022-23 2023-24 2024-25 2025-26
Actual
(Unaudited as Current Budget Update 2nd Q % AS
Continued Actual Actual Actual of Mar 2026) Budget (March 2026) Budget PY Engineering
Encroachment Permits 68,339 58,916 109,772 112,698 105,060 105,060 - 7% Plan Check Fees-Engineering 49,254 41,829 31,860 32,640 25,000 57,640 81% Engineering/Inspection Fees 45,089 44,454 10,500 16,783 17,340 20,000 37,340 122% Books, Maps and Publications 2,210 50
Planning
Plan Check Fees 74,453 63,561 21,911 19,890 19,890
Inspection Fees 62,504
Other 19 11,802 894 240 -49%
837,536 993141 836,720 795,483 743,463 70,000 813,463 2% Public Works
State Highway Maintenance 36,749 39,050 39,050 39,050 39,000 39,000 0% Fees 1,693 7,704 10,620 12,697 12,697 20%
36,749 40,743 46,754 49,670 51,697 51,697
Parks, Recreation, and Library 65,332
Recreation program fees 33,446 72,351 80,664 74,870 74,870 -7% Library fines and penalties 2,389 3,041 4,297 3,483 4,529 4,529 Community Center activities 27,560 38,305 31,440 17,225 26,214 .. 26,214 52% Parks activities and events 4,839 7,559 2,918 1,665 2,550 2,550 53% Summer swim program 10,384 16,565 10,200 10,200 -38%
Leases 13,200 13,200 13,200 12,600 13,464 13,464 7%
CDCAC 5,391 11,787 19,607 20,145 20,145
81,434 132,828 146,375 151.809 151,972 151,972 0%
Administration/Other
Successor Agency Admin Fee 199,853 198,346 241,466 247,516 245,000 245,000 -1% Special District Admin Fee 41,680 39,180 43,755 40,700 48,431 48,431 19% Other 3314336 3516082 70 82 968
Subtotal, Program Revenues 3,314,836 3,516,061 4,203,788 5,278,686 5,509,746 70,000 5,579,746 6% Interfund Transfers
Measure H 1,073,000 1,100,000 1,122,044 2,815,000 2,910,600 2,910,600 3% 1,100,000 1,122,044 2,815,000 2,910,600 2,910,600 3%
Total General Fund Revenues $ 18,371,383 $ 19,270,325 35 5 20,66,479 $ 23,602,592 $ 24,495,896 1,726,094 $ 26,221,991 % Increase vs Prior Year
ATTACHMENT D
ATTACHMENT D
2025-26 2nd Quarter Budget Report
CALEXICO General Fund
Expenditure Summary
2024-25 2025-26
Budget
(Unaudited as Current Update Adjusted YTD Actual as % YTD of March 2025) Budget (March 2025) Budget of 1-12-26 Notes General Fund in Total
Salaries and Benefits
Salary and Benefits $ 14,768,897 $ 15,562,070 $ 62,000 $ 15,624,070 $ 8,018,580 13.5/26 Payperiods = 52% $92K Addition: Proposed
New FTE/City Attorney (4
Vacancy Assumption (250,000) (250,000) months) $62K
Reimbursement - Other Funds (576,505) (726,910) (726,910) (286,801) 39% 14,192,392 14,585,160 62,000 14,647,160 7,731,779 53%
Operating Costs
Materials/Supplies 1,274,872 1,474,672 1,474,672 463,386 31% Repairs/Maintenance 363,584 663,403 663,403 174,944
Contracts/Professional Services 2,841,785 3,230,920 (10,000) 3,220,920 1,183,808 ($10K) adjustment is net of General Liability Insurance 931,422 993,498 993,498 497,124 $30K CM Prof Services; Administration/Office Costs 317,353 513,577 513,577 152,088 30% $(62)K Legal Fee reclass to Contracts/Contribution to New FTE; $22K Fire Maint
100,000 19,651 20% contract
River Operating Agreement 100,000 100,000
Contribution to CFD 2013-1 264,031 265,000 265,000 132,500 50% Cost Allocation (1,213,458) (1,244,810) (1,244,810) (622,405) 4,879,588 5,996,259 (10,000) 5,986,259 2,001,095 33%
Capital and Debt Service
Capital/One-Time Items/Transfers 98,000 156,275 156,275 49,000 31% Debt Service/Leases 212,537 232,804 232,804 98,083
Employee Leave Obligation 25,000 25,000 25,000 12,500
Pension - Unfunded Liability 2,377,817 2,681,086 2,681,086 1,340,543 Retiree Medical - Benefit Payments 844,904 661,988 661,988 330,994 Retiree Medical - Amortize Liability 21,618 21,741 21,741 10,871 3579,876 3,778,895 3,778,895 1,841,991 49%
$ 22,651,856 $ 24,360,314 $ 52,000 $ 24,412,314 $ 11,574,865 Continued
ATTACHMENT D
2025-26 2nd Quarter Budget Report
General Fund
Expenditure Summary
2024-25 2025-26
Actual Budget
Continued (Unaudited as Current Update Adjusted VTD Actual as % YTD (March 2025) of 1-12-26 Actual Notes
of March 2025) Budget Budget
Summary by Department
Police
Salaries and Benefits 5,499,652 5,445,453 223,307 5,668,760 3,038,575 54% Reclass Code Enforcement (615,219) (533,000) (533,000) (204,176) 38% from Bldg Division Reimbursement - Grant Funds
Reimbursement - Dispatch (50% Fire) (416,493) (384,572) (384,572) (182,335) 47% Pension - Unfunded Liability 949,761 1,099,441 24,608 1,124,049 549,721 49% Materials/Supplies 183,768 233,122 233,122 96,878 42%
Repairs/Maintenance 79,366 168,485 168,485 58,648 35%
Contracts/Professional Services 414,929 548,131 548,131 254,609 46% General Liability Insurance 148,777 152,174 152,174 76,087 50% Administration/Office Costs 80,365 158,823 158,823 49,088 31% Capital Outlay/One Time Items 50,275 50,275 98,083
Debt Service - Equipment Leases 212,537 232,804 232,804 6,537,443 7,171,137 247,915 7,419,052 3,835,177 52%
Traffic Control/Parking
Salaries and Benefits 343,882 383,331 383,331 174,613 46% Pension - Unfunded Liability 37,135 43,064 43,064 21,532 Materials/Supplies 60,642 78,337 78,337 29,595
Repairs/Maintenance 6,002 22,878 22,878 4,215
Contracts/Professional Services 345,902 371,355 371,355 132,790 General Liability Insurance 12,857 12,834 12,834 6,417
Administration/Office Costs 3,510 15,160 15,160 2,828
809,930 926,958 926,958 371,990
Animal Control 180,282
Salaries and Benefits 102,162 180,282 78,823
Pension - Unfunded Liability 21,220 24,508 24,608 12,304 Materials/Supplies 22,375 26,671 26,671 5,033
Repairs/Maintenance 2,588 3,132 3,132 1,026
Contracts/Professional Services 39,804 20,921 20,921 31,636 General Liability Insurance 7,347 7,334 7,334 3,667
Administration/Office Costs 951 1,967 1,967 376
196,446 264,915 264,915 132,865
Continued
ATTACHMENT D
2025-26 2nd Quarter Budget Report
General Fund
Expenditure Summary
2024-25 2025-26
Actual Budget
Continued
(Unaudited as Current Update Adjusted YTD Actual as % YTD Notes of March 2025) Budget (March 2025) Budget of 1-12-26 Actual Fire
Salaries and Benefits 4,858,593 4,595,048 4,595,048 2,538,252 55% Reimbursement - Grant Funds (162,419) (164,000) (164,000) (82,625) 50% Reimbursement - Dispatch (50%) 416,493 384,572 384,572 182,335 47% Pension - Unfunded Liability 817,137 912,308 912,308 456,154 50% Materials/Supplies 279,981 320,887 320,887 137,489 43%
Repairs/Maintenance 119,827 115,747 115,747 63,693 55%
Contracts/Professional Services 457,624 299,925 22,000 321,925 101,235 31% Stryker Pro Care Maint General Liability Insurance 102,858 102,672 102,672 51,711 50% Administration/Office Costs 19,935 32,731 32,731 12,554 38% 6,910,029 6,599,890 22,000 6,621,890 3,460,798 52%
Planning, Engineering, Building
Salaries and Benefits 627,67 891,468 (223,307) 668,160 264,394 49% Reclass Code Enforcement Vacancy Assumption (125,000) (125,000)| to Police Dept
Pension - Unfunded Liability 95,489 98,432 (24,508) 73,824 49,216 67% Materials/Supplies 20,938 59,539 59,539 12,983 22%
Repairs/Maintenance 6,522 16,284 16,284 2,620 16%
Contracts/Professional Services 98,136 230,015 230,015 46,411 20% General Liability Insurance 33,061 29,335 29,335 14,667 50% Administration/Office Costs 26,373 43,416 43,416 14,065 32% 908,186 1,243,489 (247,915) 995,573 404,357 41%
Public Works
Salaries and Benefits 633211 943,873 943,873 388,729 47% Vacancy Assumption (125,000) (125,000)
Reimbursement - Grant Funds 202,133 (29,910) (29,910) 0% Pension - Unfunded Liability 141,961 125,501 125,501 62,750 50% Materials/Supplies 462,744 451,084 451,084 59,251 13%
Repairs/Maintenance 33,189 229,873 229,873 10,533 5%
Contracts/Professional Services 88,543 166,089 166,089 52,099 31% New River Operating Agreement 100,000 100,000 100,000 19,651 20% General Liability Insurance 85,262 87,528 87,528 43,764 50% Administration/Office Costs 40,252 50,350 50,350 14,525 29% Capital Outlay 8,000 8,000
1,786,294 2,007,388 2,007,388 651,303 32%
- Continued
2025-26 2nd Quarter Budget Report
General Fund
Expenditure Summary
2024-25 2025-26
Actual Budget
Continued
(Unaudited as Current Update Adjusted YTD Actual as % YTD Notes
of March 2025) Budget (March 2025) Budget of 1-12-26 Actual Library
Salaries and Benefits 373,821 381,929 381,929 194,388 51% Vacancy Assumption
Pension - Unfunded Liability 42,100 49,216 49,216 24,608 Materials/Supplies 85,369 87,961 87,961 36,483 41%
Repairs/Maintenance 10,073 14,638 14,638 3,497 24%
Contracts/Professional Services 94,789 103,235 103,235 63,954 62% General Liability Insurance 14,694 14,667 14,667 7,334 50% Administration/Office Costs 11,917 22,563 22,563 9,282 41% 633,102 674,209 674,209 339,547 50%
Recreation
Salaries and Benefits 445,909 460,298 460,298 238,002
Vacancy Assumption
Pension - Unfunded Liability 47,745 55,368 55,368 27,684 50% Materials/Supplies 93,788 123,948 123,948 47,298 38%
Repairs/Maintenance 27,707 27,562 27,562 7,347
Contracts/Professional Services 125,225 265,875 265,875 43,042 General Liability Insurance 16,531 16,501 16,501 8,250 50% Administration/Office Costs 8,540 12,825 12,825 31%
765,443 962,377 962,377 375,624 39%
Administration, Finance, Non-Dept
Salaries and Benefits 1,84,000 2,280,388 62,000 2,342,388 1,102,803 New FTE - City Attorney (4 Vacancy Assumption mos)
Employee Leave Obligations 25,000 25,000 25,000 12,500 50% Pension - Unfunded Liability 224,930 273,148 273,148 136,574 Retiree Medical - Benefits 844,904 661,988 661,988 330,994 50% Retiree Medical - Unfunded 21,618 21,741 21,741 10,871
Materials/Supplies 65,267 93,123 93,123 38,376 41%
Repairs/Maintenance 78,312 64,804 64,804 23,363 36%
Contracts/Professional Services 1,176,832 1,225,375 (32,000) 1,193,375 458,033 38% Net of $30K CM Prof General Liability Insurance 510,036 570,453 570,453 285,227 50% Services and $(62)K Legal Administration/Office Costs 125,510 175,740 175,740 45,369 26% Fee reclass to FTE Contribution to CFD 2013-1 264,031 265,000 265,000 132,500 50% Transfer Out to Airport Fund 98,000 98,000 98,000 49,000 50% Transfer Out to Capital Fund
Cost Allocation (1,213,458) (1,244,810) (1,244,810) (622,405) 50% 4,104,982. 4,509,951 30,000 4,539,951 2,003,204 44%
Total General Fund Expenditures ≤ 22,651,856 $ 24,360,314 $ 52,000 $ 24,412,314 $ 11,574,865 47%
ATTACHMENT E
ATTACHMENT E
2025-26 2nd Quarter Budget Report
General Fund
Program Department 5-year CIP Requests
Police
Police Vehicle Replacement (Five years) $ 817,669
Police Department main building remodeling 1,500,000
Police Department sub-stations - replacement trailers 300,000 Dispatch radio - replacement/updated 75,000
All A/C equipment replacement of main building and sub-stations 50,000 Meters Department - equipment replacement 10% revenue sharing cost for 585 Met 150,000 Parking Lot Shade replacement 40,000
110,000
Parking Enforcement/ Code enforcement Vehicles Replacement 250,000 Department Printer replacement (Records, Patrol, Dispatch, Meters, Code Enforcem 45,000 8 unmarked vehicles (investigations, Admin, records) 400,000 Police portable computers 280,000
Police hand held Radios 138,000
Rear Gate replacement 50,000 4,205,669
Fire
Ladder Truck 2,100,000
Ambulance(s) 280,000
Sta. 1 Parking Lot repavement 150,000
Inspector Vehicle 50,000
Buidling Maintenance 25,000
Batterry Powered Extrication Tools 130,000
Vehicle Parts & Equipment 60,000 2,795,000
Planning/Engineering/Building
Building Permit Software 100,000
Computers/Monitors 25,000 125,000
Public Works
Cameras for Parks TBD
Vactor Truck (Sewer/Storm Drain Cleaning) (Partial Enterprise Funding) 600,000 600,000 Library
Car/small SUV 40,000
Painting & repair of library building (outside area 60,000 Computer replacement (15) 20,000
Carpet replacement 100,000
Projector for Carnegie 4,000
Carnegie doors replacement 40,000
PA System replacement at library 15,000 279,000
Recreation
Equipment Purchases
Office flooring & office equipment 35,000
Floor Scrubber 8,000
Floor Stripper 2,500
Tables/chairs 8,000
Utility cart 12,000
Mobile Stage 35,000
Cultural Arts Center Chairs/Racks 5,000
Vehicle Replacement
Truck 80,000
Facility Improvements
Flooring 375,000
Front Door Replacement 195,000
Senior Craft Room Door Automatic Door 25,000
Cultural Arts Center Front Door Replacement 75,000
Cultural Arts Center Stage Lights 15,000
Cultural Arts Center Audio Improvements 3,000 873,500
Admin
HR Cronos time system 27,545 27,545
General Fund Total $ 8,905,714
ATTACHMENT F
ATTACHMENT F
2025-26 2nd Quarter Budget Report
CALEXICO Measure H
Fund #120
Purpose of Fund
Measure H is a local sales and use tax approved by the voters in June 2010, effective October 1, 2010. The sales tax add-on (transactions and use tax) is a general-purpose tax of .5% applicable on sales within the City of Calexico and sales outside of the City under certain applicable criteria. The passage of the tax establishes a Measure H Oversight Advisory Committee to make recommendations on the use of the funds to the City Council.
Measure H Revenues pay for annual debt service on Measure H bonds issued in 2011 to fund capital projects, including fire station improvements, park improvements, and swimming pool. The Measure H committee has also in the past approved an annual allocation for Police and Fire personnel. During periods of fiscal distress, beginning in 2015 through 2021, the City General Fund drew remaining Measure H balances to sustain current operations and to rebuild its fund balance reserve. Beginning in 2022-23, a new Measure H allocation for Recreation programming was added, and the annual General Fund transfer was limited to 2% annual growth. An annual residual is now accumulating in the fund to rebuild an Emergency Reserve. 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Budget Projection Projection Projection Projection (Sunset) Beginning Fund Balance $ 228,569 763,120
Revenues Pending updated HDL Projections in the upcoming 2026-27 annual budget Measure H Sales Tax 3,898,163 3,642,010 4,000,000 3,925,000 4,023,125 4,123,703 4,226,796 4,332,466 9% -7% 8% 2.5% 2.5% 2.5% 2.5%
Investment Income 1,847
Expenditures Paid from Trustee
Transfer to Debt Fund Bond Reserve
For Measure H Bond 1,000,140 1,000,447 999,750 999,750 999,750 999,750 999,750 Existing Support
Police Salaries 850,000 850,000 867,000 867,000 867,000 867,000 867,000 867,000 Fire Salaries 400,000 400,000 408,000 408,000 408,000 408,000 408,000 408,000 Recreation Programs 30,596 35,000 35,700 35,700 36,414 37,142 37,885 38,643 Recreation - Summer Swim - 35,000 75,000 75,000 76,500 78,030 79,591 81,182 General Fund Transfer 1,122,044
2,402,640 1,320,000 1,385,700 1,385,700 1,387,914 1,390,172 1,392,476 1,394,825 Additional Support as of 2024-25
Police Salaries 600,000 612,000 612,000 624,240 636,725 649,459 662,448 Fire Salaries 600,000 612,000 612,000 624,240 636,725 649,459 662,448 Recreation Programs 295,000 300,900 300,900 306,918 313,056 319,317 325,704 1,495,000 1,524,900 1,524,900 1,555,398 1,586,506 1,618,236 1,650,601 2,402,640 2,815,000 2,910,600 2,910,600 2,943,312 2,976,678 3,010,712 3,045,426 Capital/Equipment
Police/Patrol Vehicle 30,908 55,092
Fire/Compact Truck 65,950 :
Fire Apparatus - $1.1 million w/ARPA 329,460
Fire/Heart Saver Alert (Station 2) 54,205
Sport Lights/D. Gutierrez Field 30,000
Future
480,522 85,092
3,402,780 4,295,968 3,910,350 3,995,442 3,943,062 3,976,428 4,010,462 3,045,426 Net Annual Activity 497,230 (653,958) 89,650 (70,442) 80,063 147,275 216,334 1,287,040 Ending Fund Balance $ 725,799 71,840 319,449 $ 1,398 $ 399,512 $ 546,786 763,120 2,050,160